This publication summarizes challenges and emerging issues that cities face as they respond to the needs of children and families. Data come from in-depth interviews with officials from 28 cities that participate in the National League of Cities' Municipalities in Transition Project, a high-level research effort drawing on information and experiences from a diverse group of cities nationwide. Interviews focused on: critical issues and challenges related to young people and their families; underlying factors that brought these issues to the fore; how the city is responding; what is working; what is making work harder; and in what areas the city would do more if it had appropriate knowledge and resources. Key findings include: cities are redefining their relationships with schools to help address concerns about school improvement and academic achievement; city leaders are worried about violence by and against youth, and they see greater investment in positive youth development as an important way to reduce violence; the effects of underemployment and lagging wages experienced by low-skilled workers in the new economy are intensifying problems facing children and families; and most cities are highly involved in collaborative strategies to address child and family issues. (SM)